Wildfire Risks and Home Insurance: Protect Your Home

• Consumer Alert

10 June 2025

As wildfire season begins, BCFSA encourages property owners and buyers in B.C. to take time to better understand the risks posed by wildfires and other extreme weather.

BCFSA recommends speaking with your insurance professional to ensure your coverage adequately protects against the risks from wildfires and other extreme weather.

No one wants to think they could be affected, but being prepared can make all the difference.

Here’s what you can do:

• Have an emergency and evacuation plan.
• Review your policy details and understand your deductible, coverage limits and coverages for living expenses should you be displaced from your home.
• Know how to contact your insurance company in case your property is threatened or damaged by wildfire.
• Have your insurance policy documents accessible (online if possible).
• Take pictures and videos of your property and belongings and email them to yourself.

Your insurance professional may help identify steps to better protect your home from wildfires and extreme weather. Learn more from trusted sources like ClimateReadyBC and FireSmartBC.

Help for Homebuyers

BCFSA recommends taking key steps before buying a home, as mortgage lenders often require fire insurance to approve financing.

Secure a fire insurance quote before making an offer. Come prepared with questions like:

• Can the policy be bound in advance?
• Can it be revoked if wildfire risk increases?
• What happens if a wildfire starts before closing?

Have conversations with your full team of professionals to better understand the risks:

• Mortgage broker: Find out how long your mortgage rate hold is valid and whether it could change due to wildfire-related delays; and
• Real estate professional and lawyer: Find out what protections are in place if the property is damaged by wildfire before your deal closes.

If you’re having trouble securing fire insurance, talk to your real estate professional about requesting insurance information from the seller. You may be able to use the “incumbent stay on risk” approach, where the seller’s insurer temporarily reissues their policy in your name if the closing date falls during an active wildfire threat.

Add a protective clause to your contract if you’re buying a property near an active wildfire as securing insurance and mortgage financing can be challenging.

To help manage this risk, BCFSA has introduced an optional wildfire clause for your Contract of Purchase and Sale, allowing for a one-time extension of up to 30 days if wildfire conditions prevent you from getting fire insurance.

Why it matters:

• Without insurance, your lender may withdraw financing, even after subjects are removed;
• The clause gives you time to work with your insurance professional and lender to find a solution; and
• You must show you made best efforts to get insurance—so start early and keep a record of your attempts.

You can find the wildfire clause and the fire/property clause on BCFSA’s Clauses page.

Find more tips on buying and selling real estate at Real Estate | BCFSA.